“There’s so much manipulation in the gold and silver markets. Why would I even try to get involved?”

“Mike, what is going on with gold and silver?”

The questions have been coming in. As a precious metals enthusiast, however, this is when I start smiling and telling folks, “buy baby buy!”

As governments and banks are manipulating the prices, the precious metal’s long-term fundamentals are stronger than ever. In fact, the reasons for them to suppress the gold and silver price are the same reasons for us to buy gold and silver in the first place.

Let’s face it, you’d have to be both blind and naive to ignore the fact that manipulation is taking place in the gold and silver market. The markets are rigged. Mainstream media has even covered the scandal as of late with multiple lawsuits, investigations pending, and the latest announcement that Deutsche Bank is abandoning their million dollar seat in the London gold fix. The five LBMA (London Bullion Market Association) key member banks have a conference call every weekday at 10:30 am and 3:00 pm where they decide the volume of gold to buy and sell for their clients and themselves. They then adjust the buy and sell price. Ironically enough, this is when we typically see irregular movements, usually driving the price down. This allows them and their clients a better “fixed” price, and simultaneously makes the dollar appear stronger.

There has also been massive short-selling of COMEX gold futures in the U.S. at the most inopportune times of the trading day. JP Morgan and Goldman Sachs sell off large quantities of futures contracts at periods of low activity, driving the spot price down, scaring away weak long positions and encouraging short-sellers to sell as well. This sell-off also supports the U.S. dollar when it appears weak. Recently, the dollar index dropped below a key level of 80 while gold was rising towards $1400/oz. After the sell-off, the precious metals prices dropped and the dollar index returned to above 80. This was not an isolated event.

The gold and silver prices are being manipulated to make a dying dollar appear stronger. If over the last several years, the Dollar had continued to fall and gold continued to rise, this would have undermined the Federal Reserve’s claims that quantitative easing had saved us from the brink of collapse. Gold and silver are very much widely recognized as a safe haven. Investors use it as a gauge of the health of the underlying economy. If gold rises too quickly, it could trigger a panic flight from fiat currencies. This is a battle to the death between the dollar and a true store of wealth, gold and silver.

If you’re skeptical of big banks and big government, gold and silver price manipulation shouldn't deter you from investing in sound money. It should drive you towards it.